MODERN CONCEPT OF MANAGEMENT Management is art of

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MODERN CONCEPT OF MANAGEMENT “Management is art of getting things done through people. ”

MODERN CONCEPT OF MANAGEMENT “Management is art of getting things done through people. ” Management is that field of human behavior in which managers plan, organize, staff, direct, and control human, financial resources in an organized group effort in order to achieve desired individual and group objectives with optimum efficiency and effectiveness. MAN MACHINE MONEY

Overview of Management: �In the past, management was not considered as an important part

Overview of Management: �In the past, management was not considered as an important part of development. With industrial revolution during 17 th and 18 th century, several economists expressed their ‘concepts and function of management’. Only in 19 th century, management became the separate field of study because business organization faced various problems regarding labour efficiency and wage payment system. In search of solution of these problems, people began to recognize management as a separate field of study.

� Management thought developed gradually, from past to present and passed through various distinct

� Management thought developed gradually, from past to present and passed through various distinct phases. � 1. The a classical theory. It mainly consists of 3 theories � - Bureaucratic theory. � - Scientific management theory � - Administrative theory. � Concerned with production of efficiency and productivity through the one best way. Scientific method should be used to define the best way. There should be standardization. � 2. The neoclassical theory � - Human classical theory � - Behavioral theory. � Concerned with importance of human element in management, theory emphasizes importance of individual within the organization. According to human relation, theory productivity is not only technical but also a social phenomenon. Workers' attitude govern productivity. Workers are motivated by social need. They respond to pressures of informal work groups. Money is not the only motivator. Workers are social and they advocated that people are different than machines. � 3. Modern organizations theory (The system theory and contingency theory) � • The system theory- concerned with total picture of interdependence and environmental influences. � • contingency theory concerned with inquires of each situation for managerial practice � The modern organizational theory is regarded as recent development in management theory. They represent integrative approach to management. There is no one best way of doing things under all conditions. Methods and techniques which are highly effective in one situation may not work in other situations. Situation plays an important role in application of management function. Functions are universal but their application is situational. Management takes a situational approach.

� IMPORTANCE OF MANAGEMENT � 1) Acquisition and utilization of resources � Management performs

� IMPORTANCE OF MANAGEMENT � 1) Acquisition and utilization of resources � Management performs efficient acquisition effective development and utilization and proper coordination of resources. � 2) Environmental adaptation. � Management adopts organization to changing environmental forces. � 3) Goal achievement � Management achieves goals by balancing the requirement of jobs and people. � 4) Problem solving. � Management solves organizational problems. It identifies and evaluates various alternatives and choose appropriate course of action. � 5) Performance control. � Management measures and evaluates the actual performance. � 6) Social responsibility � Management anticipate and act before hand to social expectations. � FUNCTION OF MANAGEMENT � 1. Planning � 2. Organizing � 3. Staffing � 4. Leading � 5. Controlling � 1. Planning � Planning is setting goals and deciding how best to achieve them. Planning is predetermining future. Planning is deciding in advance about what to do how to do it when to do it and who is to do it. � 2. Organizing � Organizing is establishing structure. It includes grouping tasks, producing authority – responsibility structures creating channel of communication and creating coordinating mechanism. � 3. Staffing � Staffing is hiring and assigning people to carry out tasks. It is filling and keeping filled positions in the organization structure. It is human resource management. � 4. Leading � Leading is influencing, communicating and motivating people to perform tasks for goal achievement. � 5. Controlling � Controlling is maintaining, comparing and correcting organizational performance toward goal achievement

� � � EMERGING CHALLENGES FOR MANAGEMENT 1. Globalilization: Managers need to think globally

� � � EMERGING CHALLENGES FOR MANAGEMENT 1. Globalilization: Managers need to think globally and act locally. 2. Technology: The new economy will base on digital revolution. The development in information technology will provide greater access to management. Management will need to manage changing technology effectively. 3. Quality: Quality assurance is getting important. 4. Social responsibility: Management will pursue long term goals that are good for society. 5. Empowerment: To empower worker is a challenge to management. 6. Human resource management: Management needs to deal with diversified work force, requires visionary leadership on the part of management. 7. Organization design: Organization will be lean flat and less hierarchical 8. Cultural sensitivity: Cultural value will change cross cultural influences. Organizations are emerging as cultural systems. 9. Change management: 10. Manager will face the challenge of managing change. They will need to aware specific changes and their likely impact on the practice of management. 11. Learning organization: Management needs to create learning environment. Organization of future will be predominantly knowledge based.

ADMINISTRATION & ORGANIZATION �The Dimensions of Management �Management Is an Organ—It Exists Only in

ADMINISTRATION & ORGANIZATION �The Dimensions of Management �Management Is an Organ—It Exists Only in Contemplation of Performance—The Three Primary Tasks: Economic Performance; Making Work Productive and the Worker Achieving; Managing Social Impacts and Social Responsibilities— �The Time Dimensions — Administration and Entrepreneurship—Efficiency and Effectiveness — Optimization and Innovation— �The Specific Work of Management: Managing Managers—Focus on Tasks

Administration: � According to Simon, “Administration can be defined as the activities of groups

Administration: � According to Simon, “Administration can be defined as the activities of groups cooperating to accomplish common goals” (Simon, Smithburg, Thompson, 1950). � As can be seen, administration is defined as cooperative human action or cooperative group behavior. The word, “cooperative”, is the first key element in this definition. Human activity is cooperative if it has the effects that would be absent if the cooperation did not take place. For example, for a moment let us suppose our common goal is to educate a group of individuals in the field of public administration. Having the specific goal in mind, a number of individuals who are specialists in the field of public administration have been brought together.

� In another definition, administration is defined as “an activity or process mainly concerned

� In another definition, administration is defined as “an activity or process mainly concerned with the means for carrying out prescribed ends. ” (Pfiffner and Presthus, 1967). In this definition the concept of goal accomplishment again plays an important role. As the definition clearly indicates, administration is mainly concerned with the means that are necessary for the accomplishment of predetermined goals. In this it seems that a new element is introduced, that is the concept of means. The means is the way by which something is done or obtained. When a group of individuals are working for the accomplishment of a common goal, a division of labor is necessary, so that each individual will know what to do. Or there is the need for an authority structure to control and coordinate the activities of the individuals involved. Division of labor and authority structure are means – there are many others- for carrying out prescribed ends. In this sense, administration is an activity mainly concerned with the means. For that matter cooperation and any other method which will insure cooperative activity is a means as well. According to Waldo “ administration is a type of cooperative human effort that has a high degree of rationality. ” (Waldo, 1955). As you can see cooperative human activity is again emphasized and a new concept of “rational action” is introduced. Rational action is here defined as action correctly calculated to realize given desired goals with minimum loss to the realization of

Organizations: � According to one of the prominent scholars, “ organizations are social units

Organizations: � According to one of the prominent scholars, “ organizations are social units (or human groupings) deliberately constructed and reconstructed to seek specific goals”. (Etzioni, 1964 ). In this definition organizations are seen as social units or human groupings, which implies that the basic elements of organizations are individuals. Thus the first key element of this definition is the fact that organizations are groupings of individuals. Another basic element is deliberate construction that is, organizations are deliberately constructed for accomplishing specific objectives. The third element is of course the concept of goals, organizations are established for the accomplishment of certain goals. “collectivities that have been established for the pursuit of relatively specific objectives on a more or less continuous basis. ” (Scott, 1964).

�“ social units or human groupings deliberately established for the accomplishment of specific �objectives.

�“ social units or human groupings deliberately established for the accomplishment of specific �objectives. ” Ministries , corporations, universities, hospitals, schools, political parties, �prisons, associations etc. are organizations in this sense.

Formal organization: � � � � � One of the important characteristics of formal

Formal organization: � � � � � One of the important characteristics of formal organization is the fact that their members are selected on the basis of their individual qualifications. Since each organization has pre-determined, specific goals to accomplish, and the accomplishment of goals requires a variety of activities, the individuals who are going to contribute their mental and/or physical activities have to be selected in view of the activities necessary for goal accomplishment. This selection has to be based on the qualifications of the individuals in view of the goals to be accomplished. According to the kind of activities necessary for accomplishing the goal, the members will be selected by the organization.

Organization as system: � � � � In its broadest and most abstract sense,

Organization as system: � � � � In its broadest and most abstract sense, the concept of “organization” is almost synonymous with that of system. In this understanding, the concept of organization refers to any situation where there a number of elements which are bound together or stand in some relation to one another and represent the order or structure, and that structure as a whole fulfills some sort of a function. In this sense we can talk about the organization of a building, of a machine, of a book, of an ethnic group, of a market, of a galaxy, of a planet etc. They all have some kind of organization or some ordered relationship among a number of elements. Organization as a system has the following characteristics: (a). There a number of elements; (b). The elements of a system are interrelated among themselves in an orderly or ordered manner. This means that their relationship is not chaotic or completely random. There is some kind of pattern in these relationships so that a change in one element of the system leads to predictable changes in other elements. (c). A system may be related to some other systems or be a part of some larger systems.

� Organization v/s Administration The concepts of administration and organization are closely related to

� Organization v/s Administration The concepts of administration and organization are closely related to each other; in a sense the object of both organization and administration is the control of human and other resources in the accomplishment of pre-determined objectives. Organization and administration exist together, and they are not separable. If organization is regarded as structure, then administration becomes a process; it can be argued that if organization is concerned with the formal aspects of administration, administration is a directing process carried on within the organizational setting. It is claimed that such a conceptualisation, to a certain extent, exaggerates the static properties of organizations. The fact is that organizations are subject to change and they are always changing. When the definition of organization is taken into consideration, it is obvious that it implies a certain stability. The term “administration” is sometimes used in the meaning of “organization” as shown in the following examples in Turkish and English language, --Every action of the administration is subject to judicial review. --Food and Drug Administration. The terms “administration” and “management”, are generally used synonymously, and meaning the same thing. But the term “management” is generally identified with private sector organizations and used with reference to such organizations. The term, “administration” on the other hand, is used with reference to public organizations. Such a usage should not give one the impression that managing a private organization is completely different from administering a public organization. Public or private organizations are social units established for accomplishing pre-determined objectives, and in accomplishing their objectives, they both employ the very same techniques and processes. In this sense, administration is a universal phenomenon. But this does not

THE ADMINISTRATION OF AN ORGANIZATION � THE RELATIONSHIP BETWEEN AN ORGANISATION AND ITS ENVIRONMENT:

THE ADMINISTRATION OF AN ORGANIZATION � THE RELATIONSHIP BETWEEN AN ORGANISATION AND ITS ENVIRONMENT: � Technological Conditions. � Legal conditions. � Political conditions. � Economic conditions. � Demographic conditions. � Ecological conditions. � CONSIDERATION OF GOALS � “Official” and “Operative” goals. � Multiplicity of goals. � ORGANISATIONAL STRUCTURE � Departmentalisation. � Job Specification. � Job description. � Structural levels. � Line and staff. � AUTHORITY RELATIONSHIP (AUTHORITY STRUCTURE). � Scalar Principle. � Unity of Command.

Theory of Organization: �Division of labor. �The scalar and functional processes. �Structure. �Span of

Theory of Organization: �Division of labor. �The scalar and functional processes. �Structure. �Span of control.

Importance of Management �“Companies fail when they become complacent and imagine that they will

Importance of Management �“Companies fail when they become complacent and imagine that they will always be successful. So we are always challenging ourselves. Even the most successful companies must constantly reinvent themselves. --Bill Gates Chairman and Chief Software Architect Microsoft �

The Business World Today �Constant ◦ ◦ ◦ change! Technology Society Environment Competition Diversity

The Business World Today �Constant ◦ ◦ ◦ change! Technology Society Environment Competition Diversity

What is Management? �The process of deciding how best to use a business’s resources

What is Management? �The process of deciding how best to use a business’s resources to produce good or provide services ◦ Employees ◦ Equipment ◦ Money

What is Management? � Auto industry managers ◦ Assembly line: schedule work shifts, supervise

What is Management? � Auto industry managers ◦ Assembly line: schedule work shifts, supervise assembly of vehicles ◦ Engineering: develop new product features, enforce safety standards ◦ General: plan for the future ◦ All organizations need managers!

Levels of Management �Senior management ◦ Establishes the goal/objectives of the business ◦ Decides

Levels of Management �Senior management ◦ Establishes the goal/objectives of the business ◦ Decides how to use the company’s resources ◦ Not involved in the day-to-day problems ◦ Set the direction the company will follow ◦ Chairperson of the company’s board of directors, CEO, COO, senior vice presidents

Levels of Management �Middle management ◦ Responsible for meeting the goals that senior management

Levels of Management �Middle management ◦ Responsible for meeting the goals that senior management sets ◦ Sets goals for specific areas of the business ◦ Decides which employees in each area must do to meet goals ◦ Department heads, district sales managers

Levels of Management �Supervisory management ◦ Make sure the day-to-day operations of the business

Levels of Management �Supervisory management ◦ Make sure the day-to-day operations of the business run smoothly ◦ Responsible for the people who physically produce the company's products or services ◦ Forepersons, crew leaders, store managers

The Management Pyramid

The Management Pyramid